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Full text of "Shipping Practice"

68                               SHIPPING PRACTICE

amount payable is the difference between the net sound
and net damaged value.

The shipowner is entitled to claim for freight which he
has lost by reason of non-delivery, less all expenses that he
would have incurred in the discharge of the cargo.

The interests which contribute to the general average
fund are cargo, ship, and freight. Cargo is based on the
gross arrived value less deduction for charges (freight,
landing, etc.); ship, on the value of the vessel, either sound
or damaged; freight, the gross amount at risk, less deduc-
tions for port and landing charges, etc.

No person claiming under general average is allowed to
profit by such a loss, and may only receive compensation
for the actual loss which he has suffered. In the case of a
cargo owner who loses the whole of his cargo, he receives the
value of the cargo less his proportion of the contribution
to the fund for the amount of his lost cargo.
* The settlement of a general average act is known as an
j adjustment, and the work entailed is very extensive and
detailed* This work is carried out by average adjusters.

This adjustment should be carried out jat the^j>oit _pf
destination or the place of termination of the voyage., The
adjustment may be drawn up elsewhere, but only provided
it is done in the same manner as carried out at port of
destination.

It is the duty of the shipowner to have the average
adjustment drawn up, and until settlement of average pay-
ments has been made, the carrier has a lien on all cargo for
contributions.

As the completion of an adjustment takes some con-
siderable time, it is difficult for a carrier to exercise his lien
especially when the amount due is not known. The earner,
therefore, obtains from the consignee or owner of the
cargo a signed bond, known as an^vera^e bond, stating
that when the value of the loss has been ascertained he
will pay his proportion. He also makes a deposit on account,
for which he receives a " Deposit Receipt," and the cargo is
tiien released to him.